I'm the engineering director for Google Docs (and one of the founders of Writely which became the Word Processor part). The comments here are pretty good for the most part - as has been discussed, this is just about re-posting content users have marked as public. Here's what I wrote on the original story, so you don't have to dig it out.
As we state in our terms of service, we don't claim ownership or control over your content in Google Docs & Spreadsheets, whether you're using it as an individual or through Google Apps. Read in its entirety, the sentence from our terms of service excerpted in the blog ensures that, for documents you expressly choose to share with others, we have the proper license to display those documents to the selected users and format documents properly for different displays. To be clear, Google will not use your documents beyond the scope that you and you alone control. Your fantasy football spreadsheets are not going to end up shared with the world unless you want them to be.